SIGA Technologies (SIGA)

Company

"SIGA is now considered a leading drug development company in the biodefense arena. Its portfolio of existing drug candidates and its platform for developing additional countermeasures against potential agents of biological warfare are intended to fill a critical need for safe and effective treatments. Its lead product, the smallpox therapeutic ST-246®, has completely prevented mortality in each and every animal efficacy trial and is now undergoing NDA-enabling studies. SIGA's other antiviral agents against Lassa fever, Junín, Ebola and Marburg are currently undergoing efficacy testing. SIGA is also applying its high-throughput screening technologies to identify the most likely candidates for therapeutic intervention against bunyavirus, Dengue fever, anthrax, and other category A disease threats." (company website)

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SIGA 4-month chart
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SIGA 1-year chart

Buy

SIGA was added to the Nasdaq biotechnology index on November 23, 2009, and that spurred a lot of trading. After peaking at the end of June, SIGA pulled back below both the 50-day and 200-day moving averages. It's current price, however, puts it above the 50-day again.

  • Percentage price oscillator (PPO) — above the signal line since earnings, and the spread has increased with the last two days of heavy trading
  • Volume — definite boost from inclusion in biotech index

Based on technical analysis, MarketEdge does not follow SIGA.

Sell

gain Bottom line
18%

I'm thankful, I'm thankful. This morning SIGA jumped to over $9, and as it started to fall back I considered whether to cash out a tidy profit or hold in expectation of an even greater profit. I cashed out. A 30% jump in three days is just too big to be sustained; the price might, indeed, rise higher, even in the near term, but at some point it will have to retrace some of that gain.